New Delhi, Sept. 12 -- Indian steel manufacturers are expected to face pressure on earnings in Q2 FY26 due to falling steel prices, with average domestic Hot-Rolled Coil (HRC) prices dropping from the last quarter, according to a report by JM Financials.

The average domestic HRC prices have dropped to Rs 49,600/tonne, down Rs 2,000 from the first quarter.

The report added that the steel companies have guided for a USD5-10/tonne reduction in coking coal consumption costs, but the benefit is expected to be offset by lower realisations, leading to an estimated EBITDA contraction of Rs 3,500/tonne in Q2.

However, it adds declining raw material prices may ease working capital requirements, aiding net debt reduction.

In contrast, non-ferrou...